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Macroeconomic outlook report: Spain

First quarter of 2018

During the first quarter of 2018, Spain's GDP showed a slowdown in its year-over-year growth rate with respect to the previous quarter of 0.27 p.p., standing at 2.82%. GDP lower growth was explained by the slowdown in domestic demand, which fell by 0.20 percentage points with respect to 4Q17, to 3.12%. The unemployment rate increased by 0.19 percentage points to 16.74%, while the year-over-year growth rate of employment slowed by 0.29 p.p. from the previous quarter to 2.36%. Inflation fell from the previous quarter to 0.95%. With respect to the exchange rate, the euro appreciated against the dollar, with the exchange rate at 1.23 $/€ in the first quarter of the year.

Macroeconomic overview

  • During the first quarter of the year, the year-over-year growth rate of the Spanish economy stood at 2.82%, a slowdown of 0.27 p.p. with respect to the previous quarter. This performance was due to the lower growth of domestic demand, which registered a year-over-year growth rate of 3.12% during 1Q18, after a quarterly deceleration of 0.20 p,p.
  • The adjustment in domestic demand was mainly due to lower growth in both gross capital formation and final consumption of the Public Administration, partially offset by higher growth in final private consumption.
  • The unemployment rate stood at 16.74% at the end of the first quarter, after an increase of 0.19 p.p. from the previous quarter. The year-over-year growth rate of employment stood at 2.36% after a slowdown of 0.29 p.p.
  • The euro appreciated against the dollar during 1Q18, reaching an average exchange rate of 1.23 $/€ at the end of the first quarter of 2018, 0.05 dollars per euro higher than the exchange rate recorded during the previous quarter.
  • As for inflation, in 1Q18 the CPI growth continued with the downward correction started in the second quarter of 2017, standing at 0.95% in 1Q18. This rate was 0.52 p.p. lower than in 4Q17. The evolution of the Consumer Price Index was mainly marked by a slowdown in the prices of food and non-alcoholic beverages (-0.87 p.p.), and housing, water, electricity, gas and other fuels (-1.87 p.p.).

For more information, click here to access the executive document in pdf (only avalaible in Spanish).

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.